I am in the process of a settlement and my Workers Comp company is saying they are insolvent. What does that mean for me
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If you have an IL claim you should contact and IL attorney right away as this is too complicated to be answered in one posting. This is taken from the IWCC website:http://www.iwcc.il.gov/insurance.htm
"What happens if an insurer goes bankrupt?
If an insurance company or a group workers' compensation trust becomes insolvent, the Illinois Department of Insurance, Office of the Special Deputy, takes over the company and performs the receivership duties. Go to the OSD website for liquidation orders.
Insurance guaranty associations are established by state law to pay the covered claims of policyholders and other claimants of an insolvent insurance company. The workers' compensation claims of most bankrupt insurance companies are handled by the Illinois Insurance Guaranty Fund; however, some employers do not meet the guidelines of the Fund and will not be provided with coverage.
Click here for a list of employers NOT covered by the Guaranty Fund (last updated 7/11/12). If coverage is not provided by the Illinois Insurance Guaranty Fund, parties may proceed with their claims directly against the employer. This list may not be complete. We update the list based on information provided from the Fund.
If you have questions, call the Illinois Insurance Guaranty Fund at 312/422-9700.
What insurers/pools have gone bankrupt recently?
Administrative Employer Group
Atlantic Mutual Insurance Company (AMIC)
Centennial Insurance Company
Illinois Movers' and Warehousemen's Risk Management Group
Illinois Restaurant Risk Mgmt. Assoc.
Illinois State Bowling Proprietors and Recreational Industry
Reinsurance Company of America
How do I know if my employer has workers’ compensation coverage?
By law, employers must post a completed workers’ compensation notice in a conspicuous place in every work site. You have a right to know this information. If you do not see this notice, please contact us (312/814-6611).
You may also search online for coverage information.
My employer does not have workers' compensation insurance. What should I do?
If you suspect an employer does not have insurance, you may search our online insurance database, email our Insurance Compliance Division, or call our Information Unit (312/814-6611 or toll-free within Illinois 866/352-3033). We will try to identify the carrier; if we cannot find any evidence of insurance coverage, we will ask the employer to provide proof of insurance, but will not mention the name of the informant.
If I report my employer, do I have to give my name?
No. Anyone reporting an employer may remain anonymous.
Will my group health plan or occupational disability insurance cover workers' compensation cases?
No. Group health, occupational disability, general liability, disability or property insurance will not cover workers' compensation liability. Only a workers’ compensation policy fulfills this requirement. This coverage must be purchased from a carrier authorized to write workers' compensation insurance in Illinois.
Who can I contact if I still have insurance compliance questions?
Manager of Insurance Compliance
Se habla español La Comisión
línea gratuita solo dentro de Illinois: 866/352-3033."
Joseph Stumph Collinsville office 618/346-3452